For one of his "Executive Decision" segments of Mad Money Tuesday night, Jim Cramer spoke with Todd Hynes, founder and president of XL Fleet (XL) , the leader in hybrid and electric conversions for fleet vehicles.
Hynes commented on XL Fleet's new mega-charging station at the UBS Arena in New York City, which will provide an incredible 1,000 EV chargers. When completed, the station will be seven times larger than the current largest public charging facility. Hynes explained that during events, the stations will be used by arena patrons, but at night, the charging center will provide fueling for fleet vehicles. The project includes not just chargers but also power generation, storage and power management to keep the electrons flowing.
Stations like these are important because transportation is the largest source of emissions in our country. By converting fleet vehicles to hybrid and fully electric, we can significantly reduce those emissions, Hynes added.
XL Fleet currently has over 200 customers, including municipalities, hospitals, and shuttle buses.
Let's check out the charts and indicators.
In this daily Japanese candlestick chart of XL, below, we can see that prices made a long "line pattern" until September when it popped to the upside. XL retreated back to the $10 base area before the next runup from late November to late December. In the past two months prices have retreated back to the rising 200-day moving average line. The 200-day line was tested last month and the $64,000 question is whether that was a buying opportunity.
The On-Balance-Volume (OBV) line has been declining from a spike high in late November. This tells us that sellers have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory. Maybe the indicator generates a cover shorts signal in the near future.
In this weekly Japanese candlestick chart of XL, below, we can see a "dark cloud cover" marking the peak in prices in December but so far no obvious bottom formation. Prices are testing the rising 40-week moving average line.
The weekly OBV line shows an up and down pattern the past few months - no clear trend in my opinion. The MACD oscillator crossed to the downside last month for a take profit sell signal.
In this daily Point and Figure chart of XL, below, we can see a potential upside price target in the $20 area.
Bottom line strategy: The big November-December rally in XL is still unwinding/correcting, in my opinion. A new base pattern needs to develop before I would recommend a long position. XL is worth keeping on your shopping list for a future purchase.
